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Georgia Hemp Entrepreneurs File Lawsuit Against State Over Restrictive Regulations

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Published on August 12, 2025
Georgia Hemp Entrepreneurs File Lawsuit Against State Over Restrictive RegulationsSource: Google Street View

The landscape of Georgia's hemp industry is shifting beneath the feet of business owners as a group of them mounts a legal challenge to the state's recent hemp regulations. Citing a significant downturn in sales and operational hurdles following the enactment of Senate Bill 494, these entrepreneurs assert that the state's legislative adjustments have delivered a robust blow to their livelihoods, potentially usurping the leniencies granted by federal law. According to FOX 5 Atlanta, plaintiff Scott Ellison of THC Atlanta had his brick-and-mortar aspirations dashed by regulations that exclude certain hemp products from stores, triggering a steep 60 to 75% drop in his sales.

Senate Bill 494, which ascended into law last October, sets an age threshold at 21 for hemp product purchasers, proscribes smokeable hemp flower alongside a multitude of THC-infused foods, anchors THC warning labels, and embeds new licensing requirements for the hemp trade in Georgia, the consequences of which has hemp business owners bracing for the unsustainable, for some local shops have already succumbed to the regulatory pressure, shuttering their doors perpetually. Joe Salome from the Georgia Hemp Company highlighted to WSB-TV the precipitous decline in both revenue and customer traffic since the law's inception, which has especially curtailed the sale of edibles like gummies and beverages by imposing a cap of 10 milligrams per serving.

The collective outcry from these hemp businesses is being legally articulated in a lawsuit filed in Fulton County Court, where they are represented by lawyer Zakiya Watson-Caffe. In articulating their stance, they point fiercely to the 2018 Federal Farm Bill, under which the production and sale of hemp products containing less than 0.3 percent Delta 9 THC should ostensibly not be imperiled by state laws. As Watson-Caffe emphatically told FOX 5 Atlanta, "It’s not consistent with federal law," a sentiment echoed in her plea for the courts to furnish an injunction, casting aside the state law, a mechanism to permit THCA products to grace store shelves once more.

In the intervening time, the Georgia Attorney General’s Office has taken up the mantle to scrutinize the complaint, maintaining a stance that falls lockstep with the intent to safeguard the legislation passed by the General Assembly and inked by the Governor's signature, as avowed in a statement obtained by WSB-TV. The juxtaposition of federal and state law thus remains starkly framed in the theatre of the courtroom, as hemp business owners and state authorities grapple with the complex, woven fabric of regulatory power and the quest for economic sustenance—taken shape in what could be a precedent-setting legal conundrum.